For Traders

Analytical Reviews

Technical analysis

06.05.201405:50 Forex Analysis & Reviews: Technical analysis of GBP/USD for May 06, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP/USD

Today traders will eye British Services PMI. The pair has been trading in an uptrend from 1.6465 levels. In Asia's trading session the pair is trading at 1.6873 levels. As of now, the pair opened its trading day on a bullish note. The RSI in the daily chart indicating a limited upside availability, the pair can extend its bullish wave up to 1.7036. Sell on rise is the best strategy for this pair. It is in the distribution phase on a bullish note, anytime it encounters selling pressure. The Stochastics is giving a positive divergence aiming at 1.6946 and 1.6985 as initial targets. This is valid until the pair holds 1.6853 and trades above 1.6887, currently it is trading below the 1.6887 levels. If the pair breaks the 1.6853 and is unable to cross 1.6887, it will drift up to 1.682 and 1.68 levels are the initial targets.

On the higher side, safe buying will be only above 1.6887 levels. The panic situation will come into existance below 1.6826 levels. If it breaks 1.6826, it will fall all the way towards 1.68 and 1.6745 levels.

Recommendations-

1. Sell below 1.6826, for targets at 1.68, 1.6778, 1.6763 and 1.6745.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.